A staggering 95% of forex traders lose money!
If you are thinking of trading on the forex market and you have not learned the system – then you are most likely to be among those 95 per cent.
The forex is not like a lottery where you randomly select a prospective win and hope for the best
The difference is – is that currency fluctuates all the time and it is through these fluctuations where you will be able to take advantage of winning some money (using your best knowledge of political and economical events that affect such fluctuation of course). When you start trading professionally and not by the help of a forex robot – You will soon know that only fluctuation of the currency helps you to make income on the difference in price at the precise moment you buy and sell.
Knowing when to buy and sell trades on forex is the tricky part, and requires a degree of intelligence, skill, forex knowledge, and experience, and although forex robots can achieve this to some extent – They can’t read the news! They simply rely on a set of programmed rules.
For instance – Below are the top 5 economic indicators that you need to understand and familiarize yourself with – prior to trading on the forex
These are essential to understanding currency fluctuation – hence predicting when to buy and sell a trade.
- The Gross Domestic Product (GDP): GDP is considered as the most important measure of the country’s economy
- Retail Sales: This report tracks and summarizes receipts of all retail companies in the entire country.
- Industrial Production: Industrial report indicates recent changes relating to mines, factories and utilities within a nation.
- (CPI) Consumer Price Index: The CPI accumulates the average price level paid by urban consumers for a set amount of goods and services.
- Domestic Product (GDP): crucial important economic indicator to track trends in the economic market.
- (PPI) The Producer Price Index, predicts the average changes in prices which are obtained by local manufacturers.
Here’s a good tip: If you don’t understand currency fluctuation then you may as well put your money on a horse, and a three legged one at that!